Garnet Health and Montefiore Health System announced on Wednesday that the two healthcare systems have signed a Letter of Intent for Garnet Health to pursue an affiliation with Montefiore Health System.
“Today’s announcement reflects our continued commitment to ensuring the long-term strength and sustainability of healthcare in our region,” said Jonathan Schiller, President and CEO of Garnet Health, in a press release. “Joining Montefiore Health System will enable us to bring expanded resources and clinical capabilities to our patients while preserving the community-focused care that has defined Garnet Health for generations.”
Headquartered in Middletown, Garnet Health provides healthcare services to more than 500,000 residents in Orange, Sullivan, and Ulster Counties and the surrounding areas. It employs more than 4,000 professionals with a network of more than 850 medical staff members.
The affiliation announcement comes after Garnet Health had expressed concerns earlier this year about future financial challenges, particularly as rural hospitals brace for anticipated Medicaid cuts.
In a letter addressed to Garnet Health’s medical staff, Schiller and Chief Medical Officer Pamela Murphy stated that “after thoughtful consideration of the many challenges facing healthcare organizations like ours, including rising costs, healthcare workforce shortages, declining reimbursement rates, shifting payer mix, and ongoing regulatory policy changes, it became clear that pursuing this affiliation is the right next step to protect and strengthen the high-quality care our community depends on.”
READ: Medicaid Cuts Could Be ‘Last Straw’ for Rural Hospitals, Says Garnet Health-Catskills CEO
New York’s 100th Assembly District Assemblymember Paula Elaine Kay said she’s excited about what this partnership could bring.
“I’m really looking forward to the possibility of improvements in terms of patient care,” said Assemblymember Kay. “There will be better resources, more updated equipment, which I know the hospital has been looking to add for quite some time… [and] also a possibility of a stream of medical professionals who could end up here, even for short periods of time.”
Once finalized, Garnet Health expects the new affiliation will improve access to high-quality care, clinical services, and specialty care for the over half a million residents it serves. The two organizations plan to conduct due diligence and finalize definitive agreements by the end of 2025, followed by pursuing required regulatory approvals.
“We look forward to the opportunity to welcome Garnet Health into the Montefiore family. Together, we share a deep commitment to local healthcare access, clinical excellence, and community care,” said Dr. Phillip O. Ozuah, President and CEO of Montefiore Einstein.
Who is Montefiore Health System?
The Montefiore Health System is one of the state’s leading academic health systems. It has 10 hospitals across the Bronx, Westchester, and the Hudson Valley, with over 200 outpatient ambulatory care site locations in New York.
Still, the Montefiore Health System has felt the financial and staffing constraints that have hit healthcare systems nationwide. Montefiore Medical Center narrowly broke even in the last quarter as its labor costs increased. In March, Montefiore resident doctors won a landmark union contract after two years of negotiations, citing concerns over understaffing and long hours.
Montefiore Einstein has ranked among the top 25 of more than 6,000 U.S. hospitals for complex specialty care, including cancer, diabetes, neurology and neurosurgery, and pulmonology and lung surgery.
How will this impact services or staffing at Garnet Health locations?
Marcy Manheim, Garnet Health’s Administrator of Marketing & Corporate Communications, told Radio Catskill that “there will be no impact on staff or services.”
Sullivan County’s Community Services Director Melissa Stickle said during an Oct. 16 Health & Human Services Committee that the planned opening of Lexington Center for Recovery’s inpatient substance use treatment program at the Garnet Health Harris campus will not be affected by this affiliation.
Garnet Health stated in a press release that the partnership will enable “a stronger, more sustainable healthcare network delivering the highest standards of care to our community.”
Addition: This article has been updated to include comment from Assemblymember Paula Kay and information about Lexington’s services at Garnet Health.
Image: Exterior of Garnet Health’s Urgent Care Facility in Monticello, N.Y. (Photo Credit: Garnet Health)
How will this merger affect the Garnet hospital in Sullivan County? It has already had services and staffing reduced so the “highest standards of care” are currently suffering there.